Light amplification without population inversion and absorption with inversion driven by quantum coherent interferences in a closed three level V-type system is studied from the point of view of two color dressed state basis. Approximate analytic time dependent solutions, for coherences and population distribution are derived, and compared with full numerical solutions. Steady state quantities are also calculated, and the conditions under which the system exhibits gain with and without inversion, in the dressed state representation are derived. It is found that for a weak probe laser field light amplification without inversion may occur, for a range of system parameters, in both the bare and the dressed state representations.